Tobacco Tax Stamp Scheme in 2019

UAE’s Federal Tax Authority (FTA) has confirmed that it is set to introduce a new digital tax stamp scheme for tobacco products, which will come into effect at the beginning of 2019.

The tax stamp scheme is expected to establish a “comprehensive tracking framework” to support FTA’s efforts in collecting taxes, combating tax evasion, and upholding the rights and duties of taxable persons in UAE.

A stamp or digital seal will be installed on tobacco product packaging, which will be registered in the authority’s database and read by special devices to ensure that the tax on the products is paid.